The Malaysian government has imposed a moratorium on the Malaysian Rubber Board (MRB) in regards to its property and real estate development activities. Primary Industries Minister Teresa Kok announced the news in an interview session in Putrajaya recently.
In the past, MRB reportedly deviated from the development and modernisation of the Malaysian rubber industry and was instead involved in real estate. To bolster the local rubber industry, the ministry has decided to warn MRB, to avoid any problems from its involvement in a business unrelated to its core mission.
The rubber sector is another driving national commodity apart from palm oil. Kok elaborates: “In strengthening the rubber sector, the ministry enforced a stabilisation process for MRB –a moratorium has been enforced upon MRB to not continue any activities in relation to property development, and returns MRB to its original cause, which emphasises research and development. This is for the upstream and downstream sectors, for the benefit of the rubber industry, in accordance with Act 551 of the MRB (Incorporation) Act 1996.”
Act 551 highlights the objectives of the MRB, as well as the functions and powers of the agency’s board, established under the Ministry of Primary Industries.
However, the LGM Properties Corporation (LGMPC) – LGM refers to the Malay acronym of MRB – which is an arm under MRB, will continue to manage some assets owned by MRB.